Published 7 October 2026
Most people renting a flat never see GST on their rent, and most landlords never charge it. That is the general rule, but there are two exceptions that catch people out. One concerns tenants who are registered for GST. The other concerns housing society maintenance bills above a set amount. This article sets out when rent and maintenance attract GST, and who pays it.
Residential rent is generally exempt
Notification No. 12/2017-Central Tax (Rate) lists services exempt from GST. Serial number 12, as originally issued, exempted:
Services by way of renting of residential dwelling for use as residence.
A family renting a flat to live in pays no GST on the rent, and the landlord charges none. The landlord’s own registration status does not matter. What matters is that the property is a residential dwelling, rented for use as a residence.
The exception: tenants registered for GST
From 18 July 2022, Notification No. 04/2022-Central Tax (Rate) narrowed the exemption. It now reads “except where the residential dwelling is rented to a registered person”. Where the tenant is registered for GST, the rent is no longer exempt.
The tax is not paid by the landlord. Notification No. 05/2022-Central Tax (Rate) added an entry to the reverse charge list, for “service by way of renting of residential dwelling to a registered person”. The supplier is “any person” and the person liable is “any registered person”. The registered tenant pays the GST itself, under reverse charge; the landlord does not collect it.
The usual case is a business renting a flat as a guest house, or as accommodation for its staff.
A carve-out for proprietors renting a home to live in
The 2022 change caught a common case it was not aimed at: a person who is registered because of a small business, and who rents a flat simply to live in. From 1 January 2023, Notification No. 15/2022-Central Tax (Rate) added an Explanation restoring the exemption where:
(i) the registered person is proprietor of a proprietorship concern and rents the residential dwelling in his personal capacity for use as his own residence; and (ii) such renting is on his own account and not that of the proprietorship concern.
A sole proprietor renting a home for personal use is back within the exemption. The carve-out is limited to proprietors. A company or partnership renting a flat is not covered by it.
Hostels and paying guest accommodation
From 15 July 2024, Notification No. 04/2024-Central Tax (Rate) narrowed the exemption in another direction. A second Explanation provides that the entry does not apply to accommodation in student residences, or to hostels, camps, paying guest accommodation and the like.
The same notification added a separate exemption, serial number 12A. It covers accommodation services of up to Rs 20,000 per person per month, supplied for a continuous period of at least 90 days. A student or worker in a hostel or PG on a long stay, within that limit, is therefore still exempt, under the new entry rather than the old one.
Commercial property is different
Renting a shop or office is not exempt. It carries GST at 18 per cent, made up of 9 per cent central tax and 9 per cent State tax. Ordinarily the landlord, if registered, charges it.
From 10 October 2024, Notification No. 09/2024-Central Tax (Rate) added a reverse charge entry for the case where the landlord is unregistered and the tenant is registered. It covers renting “any immovable property other than residential dwelling”. The registered tenant pays the GST. From 16 January 2025, Notification No. 07/2025-Central Tax (Rate) excluded tenants who are in the composition scheme.
Housing society maintenance
Monthly maintenance paid to a resident welfare association or housing society is a separate question. Serial number 77 of Notification No. 12/2017-Central Tax (Rate) exempts a society’s charges to its own members for sourcing goods or services for their common use. The limit, raised by Notification No. 2/2018-Central Tax (Rate), is “seven thousand five hundred rupees per month per member”.
CBIC’s Circular No. 109/28/2019-GST explains how the limit works:
- GST applies only if the maintenance exceeds Rs 7,500 per month per member and the association’s turnover is Rs 20 lakh or more.
- The limit applies per flat, so an owner of two flats is tested separately for each.
- Where the charge exceeds the limit, GST at 18 per cent applies to the whole amount, not just the excess. The circular’s example is a charge of Rs 9,000, on which “GST @18% shall be payable on the entire amount”.
In short
- Renting a home to live in: exempt, unless the tenant is registered.
- Registered tenant: the tenant pays GST under reverse charge, except a sole proprietor renting in a personal capacity as their own residence.
- Hostels and PGs: outside the residential exemption, but exempt under serial 12A for stays of at least 90 days up to Rs 20,000 a month.
- Shops and offices: 18 per cent. If the landlord is unregistered and the tenant registered, the tenant pays under reverse charge, unless the tenant is a composition taxpayer.
- Society maintenance: exempt up to Rs 7,500 per member per month. Above that, if the society’s turnover is Rs 20 lakh or more, 18 per cent on the whole amount.